Brussels, 16/06/2009 (Agence Europe) - Presented to the member states at the meeting of Committee 133 on 12 June, the latest European Commission report on potentially trade restrictive measures adopted by third countries calls for “extreme vigilance” as, although the world economy has not plunged into a generalised race towards protectionism, the emergence of new trade restrictive or distortive measures “continues to be on the rise”, particularly in G20 countries albeit in favour of free trade. Types of measures identified have become more complex and diversified, especially when they are part of broader stimulus packages. The Commission takes the view that measures taken by Indonesia and movements in Brazil to protect the steel sector “merit special attention in this respect”.
Many countries, including developing countries, have chosen to adopt stimulus packages to face the crisis. “Although most of these measures aim at economic recovery and promotion of trade, some of them may lead to trade restrictions adopted in more subtle forms. This is the case in particular when stimulus packages contain discriminatory elements, for instance in the area of subsidies or local content requirements for government procurement purposes. (…) The majority of the measures in the stimulus packages aim at stimulating the economy in general and thus affect positively national companies as well as foreign companies and imports. However, other parts are aimed at helping particular national industrial sectors and could thus be trade distorting”, the Commission explains. Measures targeted are direct US subsidies to specific companies or sectors, such as the loans to the automobile manufacturers GM and Chrysler. Also, Russia's anti-crisis action plan, which includes measures including support of employment, stabilisation of the financial situation in the main sectors of activity, support of demand (preferences for Russian suppliers in procurement procedures), and support to priority investment projects (energy, transport, processing industry), and key sectors (agriculture, automotive, military-industrial complex, transport, construction and utilities sectors). In the case of China, there are measures (which include stimulus for SME exports) for several sectors (steel, automobile, ICT, non-ferrous metals, equipment manufacturing, petrochemicals and logistics). In Japan, new subsidy schemes have been introduced and these, too, are targeted. Such measures include loans to the electronics and automotive industries and incentives for the purchase of new “green” vehicles. Finally, the stimulus packages of Taiwan, the Philippines, Vietnam, Indonesia, South Korea and Canada are also targeted.
On the sectoral level, a tendency is confirmed: - restrictive measures continue to focus on certain sectors such as agriculture and agri-foods, steel, metals and the automotive industry. What is new is that the report also reveals a surge in restrictive measures in the services sector. In total, 123 restrictive measures were noted on 12 June among the main trading partners of the EU, with, according to sector: - 6 measures for textiles, 4 toys, 3 telecommunications, 27 agri-food, 6 raw materials, 19 steel and metals, 1 pharmaceuticals, 14 motor industry, 12 services (compared to none at all in January) and 31 in the other sectors. Thirteen G20 countries are concerned: - Russia is in the lead with 21 measures (including 6 in the agri-food sector, 4 in the steel sector and metals and 3 in the automotive industry) ahead of Indonesia (17 measures of which 5 in agri-foods, 3 in metals and 2 in raw materials), Argentina (12 measures of which 3 for textiles, 3 metals and steel and 2 for the automotive industry), China (11 recovery plan measures including 3 in services and 2 in metals and steel), and the United State (9 measures including 3 in the motor industry and 3 in services). (E.H./transl.jl)